According to those with the Federal Reserve, they are surprised and have no explanation for the persistent lack of inflation they claim that they've been seeing in the market. They can't understand why inflation hasn't been hitting their 2 percent annual target rate.
They continue to try and maintain the narrative that everything is fine , that things are better than ever, but maybe they aren't telling the whole story. And even Yellen herself has previously admitted that perhaps the FED could be mistaken in its assumptions about inflation.
Yellen might want the public to believe that inflation isn't anything to worry about, but some say that we can soon expect to see prices rise and that inflation is going to go much higher. It still might take some time to see though, as one recent Reuters poll suggests that inflation is expected to remain below their 2 percent mark until at least 2019.
Not everyone agrees that inflation is as the FED says it is.
Ron Paul, author of the book End The Fed, was recently on the live show Futures Now that's aired on CNBC and he shared his thoughts on inflation in the market; which he says is all over the place.
“I don't want to make a prediction, but if in a year from now it's down 50 percent I wouldn't wake up and say 'wow! I never expected that'...” - Ron Paul
Paul went on further to say that he believes “there's a ton of inflation. Bonds are representing inflation... These high prices in stocks..that's inflation.”
When asked on why those with the Federal Reserve cannot accurately distinguish inflation in the market as Paul does, he suggests that they do see it but that they don't want to see it.
He suggests that if they were to emphasis it then that would signal that they were doing something wrong.
There are a few financial analysts who have been warning for years now that we could very soon see a significant stock market correction, but as far as how deep that correction might be that's still a guessing game. Paul says that we cannot judge exactly when it will happen or how fast it might happen, but he does say that you can look for telling signs--distortions in the market.
It's suggested that this coming correction might involve a collective stock market, real estate, and bond crash and that the crash we saw back in 2008 was only a speed bump leading up to the real thing.
Once the inflation does show up as analysts suspect that it eventually will, and we start to see higher prices, it will mean a lower standard of living for millions; especially difficult for those who are on a fixed income.
The coming crash will be a result of the overwhelming manipulation that government's around the world have done, according to analyst Mike Maloney. It has “all been a manipulation” he says and such manipulations “always fail” he warns. However, not everyone has such a gloomy outlook on what is to come, and many expect that when things get tough that the FED will quickly jump in to "rescue" resolve the situation.
But how long can they really try to sustain things with their monetary heroin ?
Pics:
Pixabay
Pixabay
Sources:
https://www.cnbc.com/2017/10/20/watch-fed-chair-yellen-speak-on-monetary-policy-since-the-financial-crisis.html
https://www.cbsnews.com/news/yellen-federal-reserve-perplexed-by-chronically-low-inflation/
https://www.cnbc.com/2017/12/01/ron-paul-inflation-is-creating-a-dangerous-distortion-in-stock-market.html
https://www.cnbc.com/2017/09/26/yellen-fed-wrong-on-employment-inflation-meaning-easier-policy-ahead.html
https://www.cnbc.com/2017/09/26/the-federal-reserve-doesnt-understand-inflation-causes-larry-kudlow.html
http://business.financialpost.com/news/fp-street/when-inflation-is-not-always-and-everywhere-a-monetary-phenomenon
https://seekingalpha.com/article/4126697-peter-schiff-fed-behind-curve-financial-conditions-loosest-level-since-1994
https://www.reuters.com/article/us-fed-policy-poll/fed-rate-expectations-on-the-rise-before-tax-cuts-passed-senate-reuters-poll-idUSKBN1DY1LX
https://www.bloomberg.com/news/articles/2017-12-04/u-s-inflation-rebound-hasn-t-been-the-right-kind-for-this-fed
https://www.forbes.com/sites/prestonpysh/2017/06/21/an-interview-with-jim-rogers-of-course-we-are-in-a-stock-market-bubble/#56db0cad6394
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I don't know how long they can sustain the charade, but I wonder, given the current cryptocurrency bull market we're seeing, and the breakthrough into mainstream awareness... Do you think an impending collapse will only further seal the deal and send all cryptos soaring to the stars? Will the next collapse be the dawn of a new era and the death of traditional financial systems?
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I am certainly not holding onto dollars. I see price increases for many things, especially food, education and medical categories. That points to an inflation of the money supply as those prices couldn't be charged if there were not massive injections of dollars into the US economy by the Federal Reserve. If I understand it correctly, that's inflation.
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Agree. I think people who are not diversifying in both metals and cryptos is at more risk. I'm shocked more of the community does not support all three instead of just investing in one or the other.
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The price of BTC is inflation. The real estate prices are inflation. The bull market is inflation. Prices going up is inflation.
As the petrodollar system is replaced by petroyuan, inflation will begin in earnest, as those dollars held offshore to buy oil are used for the last time, and end up here for good.
Obama increase the money supply 5 fold. We are going to feel every bit of 500% inflation as a result. The longer it takes the more gentle it will be.
I don't expect it to be gentle.
Thanks!
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if you look at how high food has gone up you know inflation is alive and well. Consider also the cost of college tuition and health care and tell me there is no inflation. To truly embrace a college education, creates debt for the rest of your life. The high price of healthcare is designed to usher in more socialism as it eats away peoples savings. The Federal reserve is no more federal than you or I am. Check out The Creature from Jeckel Island. As for our fiat money, get out of it. Invest in hard assets as they will retain their value. The market will crash and worse than 2008...but only when THEY are ready to bring down the system. Could be while yet. Thanks for the wonderful post.
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thanks friend good job
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So nice informations @doitvoluntarily I am positively not clutching dollars. I see cost increments for some things, particularly sustenance, training and restorative classes. That focuses to an expansion of the cash supply as those costs couldn't be charged if there were not huge infusions of dollars into the US economy by the Central bank. In the event that I comprehend it effectively, that is expansion.
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@rabeel you seem to have simply run @matthewdavid's comment through google translate into one language, and then back to English.
I am seeing this more and more.
Are you a bot?
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Wow,excellent your post my dear friends @doitvoluntarily,thank you very much for the all new impormitoan
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Excellent post dear friend @doitvoluntarily, thank you very much for all the information.
When living in Argentina these data do not surprise us here we had in the month of November a monthly inflation of 2%.
Thank you very much for another material of much interez
I wish you a good night
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That's a good sign! Thank you for the information
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I would think the margin of error is too small to be reliable. In any case, hodling crypto and keeping close to off grid as possible...
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Hi @doitvoluntarily , what an interesting topic!
It is very desirable to have a small amount of inflation. That's at least what small businesses hope for, so that the money they borrowed loses in value and they can pay back less than they borrowed. A great help for small businesses and families that bought a house for example.
On the other hand, people that store money in the bank, have a great interest in the inflation staying as low as possible, so that their money maintains it's value.
It's important that we all keep an eye on that development.
xx
Elena
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Great thoughts on inflation. Housing, college tuition, and medical costs all point to extreme inflation. This is a great video about interest rates and the federal debt:
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Great job.And yes,inflation is certainly something to worry about.The earlier counter-measures are taken,the better for each and everyone of us.
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¡Ouch! I know you already knows this pretty well @doitvoluntarily. But ¿inflation? Haha ¿Who would have suspected it while in Vzla? We are witnessing how this witchy-bitchy flies wildly every minute from the first row over here. ¡Wadda Misery Crap!
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"one recent Reuters poll suggests that inflation is expected to remain below their 2 percent mark until at least 2019."
Think I'm gonna use that time to convert as much fiat into cyptos, precious metals, real estate and brass and lead as possible.
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